VTB Capital values Russia's En+ at $9 bln-$12 bln ahead of IPO

MOSCOW, Oct (Shenzhen: 000069.SZ - news) 6 (Reuters) - VTB Capital, a coordinator of the

planned initial public offering of Russia's En+ has valued the

group's total equity at between $9 billion and $12 billion,

according to a VTB report obtained by Reuters.

En+ Group, which manages Russian tycoon Oleg Deripaska's

aluminium and hydropower businesses, is planning an initial

public share offering (IPO) in London and Moscow.

It has not said how much of its equity it plans to float but

has said it hopes to raise $1.5 billion from the offering.

The listing will be the first major IPO of a Russian company

in London since 2014, when the West imposed sanctions on Russia

over its actions in Ukraine, and is seen as a test of investor

appetite for Russian assets.

En+ and VTB Capital declined to comment.

Sberbank SIB, another of the coordinators, has separately

prepared several different scenarios to investors that would

determine how it values En+, according to two financial market

sources.

The sources told Reuters that the scenarios outlined

suggested Sberbank CIB was leaning toward a fundamental value

of En+ of around $10 billion.

However, Anton Malkov, Sberbank CIB managing Director, told

Reuters that the bank had not set a definite value on the

company.

"The assumption that Sberbank CIB is valuing the company at

around $10 billion is incorrect," he said.

"The base amount of the transaction totalling $1 billion has

been recorded, while it is the market that will determine the

equivalent in terms of the percentage of the charter capital,"

he added.

The base amount of the deal mentioned by Malkov does not

include Singapore's AnAn Group, a strategic partner of China's

CEFC (Shenzhen: 002018.SZ - news) , which agreed to purchase global depository receipts (GDRs)

during the IPO for $500 million.

The IPO will be split between new and existing shares.

Along with VTB Capital and Sberbank SIB, other global

coordinators and bookrunners for the deal include Citigroup (NYSE: C - news) ,

Credit Suisse (IOB: 0QP5.IL - news) , JP Morgan and Merrill Lynch.

BMO Capital Markets, Gazprombank, Societe Generale (Swiss: 519928.SW - news) and UBS

are acting as joint bookrunners, while Atonline is acting as

MOEX bookrunner of the offering.

(Reporting by Olga Popova, Anastasia Lyrchikova and Polina

Devitt; Writing by Polina Devitt; Editing by Katya Golubkova and

Susan Fenton)